Answer:
(A) demanders of loanable funds, they must borrow from households.
Explanation:
The firms are the one which do business of producing goods, or of providing services, it basically need money to run their business. Therefore, it demands money and borrows from banks or households, from households by issuing bonds, shares to individual investors etc:.
This clearly states that the firms are the one's who take loans and then the returns are paid to government in the form of taxes.
Thus, the correct option is :
Statement A
